Royals Set to Lose $45 Million All-Star a Year Ahead of Free Agency, Insider Reports

Royals Risk Losing $45 Million All-Star a Year Early, Says Insider

Should the Royals start to be concerned?

In Major League Baseball, a deal that seems like a steal can sometimes be too good to last.

The Kansas City Royals signed free-agent starting pitcher Seth Lugo to a three-year, $45 million contract before the 2024 season. On the surface, it seemed like a solid move for a 34-year-old with limited starting experience. However, Lugo has far exceeded expectations, making the deal look like a major bargain.

Over 42 starts with the Royals, Lugo has posted a 19-13 record with a 3.01 ERA and leads the American League with 263 1/3 innings pitched. Although he’s currently on the injured list with a finger sprain, it’s considered a minor issue that doesn’t pose long-term concerns for a starting pitcher.

All signs point to Lugo potentially opting out of his contract and leaving Kansas City a year early—unless the Royals are willing to offer him a significant new deal to stay.

On Wednesday, The Athletic’s Jim Bowden reported that Lugo is expected to opt out of his contract and become a free agent this winter, barring any major setbacks in the remainder of the season.

“Lugo spent most of his career as a reliever until 2023,” Bowden noted. “That year, he went 8-7 with a 3.57 ERA in 26 starts before signing with the Royals. He proved it wasn’t a fluke by leading the league with 33 starts in 2024, going 16-9 with a 3.00 ERA.”

Lugo also earned a Gold Glove Award, made his first All-Star team, and finished second in AL Cy Young voting. He currently holds a 3.02 ERA over nine starts this season, and if his performance continues, he is likely to turn down his $15 million player option for 2026 and re-enter free agency.

The upcoming free-agent pitching market is relatively weak, with standout names like Dylan Cease and Michael King from the San Diego Padres, Zac Gallen from the Arizona Diamondbacks, and Framber Valdez from the Houston Astros as the main options.

Although Lugo will be 36 by 2025, he’s poised to secure a lucrative deal from a team in need of one or two more starters to become a contender. Unfortunately for the small-market Royals, the number of teams in that position has grown significantly in recent years.

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